Marvin Ltd

Essay

Marvin Ltd. uses an automated process in its manufacturing operations. On November 1, the company had 25,000 units in beginning work in process which were 80% complete with respect to conversion. During the month of November, it started 120,000 into production. On November 30, there were 20,000 units in process, which were 40% complete with respect to conversion. Direct materials are added at the beginning of the process, and no units are spoiled in production.
Marvin Ltd. uses standard costing and has determined that its standard costs are $4.15 for direct materials and $1.75 for conversion.
Required:
Prepare a production cost worksheet using the FIFO method.